Handicraft companies seek 'deemed export' status for goods sold in India
Date : July 12, 2011
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Handicraft exporters have demanded that goods being sold in India should be given "deemed export" status to make them eligible for tax benefits that currently apply only to exported items.
Handicrafts exports slumped in 2007-08 and have been struggling since then due to continuing economic uncertainties in the major markets of USA and the European countries.
"The handicraft exports have been recovering very slowly and has slumped by nearly 100 percent since 2007", said Arvind Vadhera, chairman of Export Promotion Council for Handicrafts (EPCH). "New reforms are crucial to boost exports as US and EU that constitute 60% of the Indian handicrafts export market are still ailing," he added.
Currently, all handicrafts items are eligible for benefits of 7% duty credit under exports and enjoy several other benefits. EPCH, has approached the Directorate General of Foreign Trade (DGFT) to make all handicrafts goods within the country that are being traded in foreign currency eligible for all the benefits enjoyed by exported handicrafts items.
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